New era: The reduced lifetime allowance is upon us

LTA changes make their entrance

clock • 3 min read

Martin Tilley assesses the impact of the reduced lifetime allowance and looks at the various protection regimes in place for savers...

Having entered the new tax year, the third reduction in the lifetime allowance (LTA) is upon us. Individuals vesting in the current tax year will be tested against the new LTA of £1m unless they have arranged one of the numerous LTA protections introduced at each reduction. While the vast majority of people will not be affected by the reduction, those that are, such as individuals with a sizeable pension fund or likely to reach the LTA limit, one would have thought they would already have taken advice to ensure the appropriate protection was in place. However, this is obviously not...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

When is a SIPP not a SIPP? Time for a terminology rethink

When is a SIPP not a SIPP? Time for a terminology rethink

'I would suggest that it’s time to review the use of the term SIPP,'

Caitlin Southall
clock 01 December 2025 • 4 min read
Bridging the generational pension confidence gap

Bridging the generational pension confidence gap

'The knowledge gap is universal'

Robert Cochran
clock 27 November 2025 • 5 min read
Warnings of 'damaging' pre-Budget pension speculation impact

Warnings of 'damaging' pre-Budget pension speculation impact

Commentators say speculation on pension issues has negatively impacted saver confidence

Jasmine Urquhart
clock 27 November 2025 • 3 min read